Medicare Part B Premiums raised only slightly for 2012 – good news for Seniors to continue affordable health insurance in Brentwood

Part B Premiums for Medicare beneficiaries will rise  more modestly in 2012 than previous expected, which is good news for Seniors being able to keep affordable health insurance in Brentwood and the rest of the country . Standard Premiums Part B had been projected to increase to $ 106.60 a months, but instead will rise to $ 99.90 next year,  a $3.50 increase over 2011; the standard premium is $ 96.40 in 2011. The Premium of $ 96.40 had been frozen for 3 years, due to the fact that the Social Security cost-of living adjustment (COLA) had not been changed.  Part B pays for physician visits, hospital outpatient costs and certain other services.

Standard premiums are set so that they cover 25 % of projected medicare costs. Higher-income seniors pay higher premium amounts based on a sliding scale.

One of the reason for the modest increase is due to the fact that the utilization rates of physician and other health services is lower than expected the other reason is that the overall health cost grow slower than expected.

Earlier this months federal officials announced a 3.6 percent Social Security Cola( cost-of-living adjustment )  for 2012, the first since 2008. That amounts to about $ 43 in additional benefits for the average recipient per months.

At the same time, the Medicare Part B deductible will decrease to$ 140 in 2012 from $ 166 in 2011. The deductible is set by Medicare law to reflect 1/2 of the total estimated per-enrollee cost of benefits and administrative expenses

In 2012, the Medicare Part A deductible for hospital services will increase to $ 1156 from $ 1132. The inpatient premium will increase by $ 1 to $ 24 a month.

Remember the Annual Enrollment Period (AEP) started October 15th and will end December 7th, if you need help with your  plan selection don’t hesitate to contact us at Solid Health Insurance Services, where our goal is to assist you to find affordable health insurance in Brentwood.